Selected data taken from the accounting records of Lachgar Inc. for the current year ended December 31 are as follows:

During the current year, the cost of merchandise sold was $448,500, and the operating expenses other than depreciation were $78,000. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. Determine the amount reported on the statement of cash flows for(a) Cash payments for merchandise and(b) Cash payments for operatingexpenses.

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Balance, January 1 $ 6,110 46,020 84,110 3,900 Balance, December 31 Accrued expenses payable (operating expenses) Accounts payable (merchandise creditors) Inventories Prepaid expenses $ 5,590 41,730 77,350 3,250